According to media reports, PayPal expects revenue in the third quarter to be between $3.62 billion and $3.67 billion, below the average analyst estimate of $3.71 billion. Adjusted earnings per share would range from 53 cents to 55 cents, in line with an average forecast of 54 cents by market analysts.
The company said in its earnings report on Wednesday that its third-quarter revenue outlook will be lower than market expectations, and the growth rate of its mobile payment service, Venmo, has begun to slow.
This raises concerns among analysts who have been bullish on the prospects for the mobile payment application.
Dan Loeb, the US activist investor, has started to make a bad start to the heavy bets paid by the giant PayPal investment.
Third Point, a hedge fund owned by Mr. Loeb, recently piled into PayPal shares, bloomberg reported on Monday.
Dan Loeb told investors that PayPal’s share price is expected to reach $125 in the next 18 months. Third Point opened its PayPal shares in the second quarter, so it did not disclose the number of shares held.
PayPal’s earnings showed that the company’s second-quarter revenue was $3.86 billion, above the average estimated $3.81 billion trillion by market analysts. Because of bullish on the company’s long-term prospects, the PayPal board authorized a total of 10 billion dollars in the repurchase scheme.
PayPal’s shares fell 5.5% in after-hours trading on Wednesday as the outlook for third-quarter revenue missed market expectations. PayPal’s share price jumped more than 80 percent in 2017, but the company’s share price has slowed since the start of the year, rising 24 percent so far this year.
After taking over, PayPal CEO Dan Schulman has been pushing the company to make more acquisitions, giving many investors the feeling that PayPal has been buying and buying.
Since its first-quarter earnings in April this year, the company has bought a number of companies, including $2.2 billion trillion to buy Swiss small business payment services izettle.
It is widely believed that PayPal’s big takeover was due to a desire to reduce its over-reliance on ebay and continue to expand in other areas of the payment industry.
As the former parent company of PayPal, eBay began delivering payment transactions to other service providers.
EBay said on Tuesday it plans to support Apple Pay, its payment service, starting in the fall.
Mr. Schulman has also been looking for ways to make Venmo profitable, with one of the biggest steps being to add Venmo payment options to retailers.
Bill Ready, PayPal’s chief operating officer, recently said that the number of active users in Venmo increased 11% from January to April this year, allowing the company to gain revenue through Venmo.
PayPal did not disclose the number of active Venmo users in its second-quarter results, but said growth was slowing.
In the second quarter of this year, Venmo’s deal amounted to $14 billion trillion, up 78% from a year earlier, but at a slower pace than the 80% in the first quarter.
PayPal all products processed in the second quarter of the total volume of transactions reached 139 billion U.S. dollars, an increase of 29%.
PayPal’s adjusted second-quarter earnings per share were 58 cents, beating market expectations of 57 cents. PayPal also expects revenue to grow between 17 percent and 19 percent this year, with revenue up to $15.5 billion.